Trump threatens Harvard's tax-exempt status after freezing $2bn funding

WASHINGTON - President Donald Trump has called for Harvard University to lose a valuable tax break, hours after his administration announced it is freezing more than $2bn in federal funds for the elite institution.

The White House has demanded the oldest university in the US make changes to hiring, admissions and teaching practices which it says will help fight antisemitism on campus.

Since returning to office, Trump has pushed to reshape top universities by threatening to withhold federal funds that are mostly designated for research.

Harvard became the first major US university to reject his administration's demands on Monday, accusing the White House of trying to "control" its community.

In a Tuesday morning post on social media, Trump threatened to go beyond withholding the federal funds and targeted Harvard tax-exempt status.

Universities, as well as many charities and religious groups, are exempt from paying federal income taxes. This valuable tax break, though, can be removed if the groups become involved in political activities or move away from their stated purposes.

"Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting "Sickness?" he wrote on Truth Social. "Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

Losing the exemption could cost Harvard millions of dollars each year.

The Ivy League institution also has a fund of assets, or endowment, valued at $53bn.

Later on Tuesday, White House Press Secretary Karoline Leavitt said Trump wanted the university to apologize for what his administration says is continuing tolerance of antisemitism.

The sweeping changes demanded by the White House would have transformed Harvard's operations and ceded a large amount of control to the government.

Its letter to Harvard on Friday, obtained by the New York Times, said the university had failed to live up to the "intellectual and civil rights conditions" that justify federal investment.

The letter included 10 categories for proposed changes, including:

• reporting students to the federal government who are "hostile" to American values
• ensuring each academic department is "viewpoint diverse"
• hiring an external government-approved party to audit programs and departments "that most fuel antisemitic harassment"
• checking faculty staff for plagiarism

President Trump has accused leading universities of failing to protect Jewish students when college campuses around the country saw protests against the war in Gaza and US support for Israel last year.

The letter orders the university to take disciplinary action for "violations" during protests.

In explaining its rejection of these demands, Harvard president Alan Garber said the university would not surrender its independence or relinquish its constitutional rights under the First Amendment protecting free speech.

"Although some of the demands outlined by the government are aimed at combating antisemitism, the majority represent direct governmental regulation of the 'intellectual conditions' at Harvard," he said.

Shortly after his letter of resistance was sent, the education department said it was freezing $2.2bn in grants and $60m in contracts to Harvard immediately.

"Harvard's statement today reinforces the troubling entitlement mindset that is endemic in our nation's most prestigious universities and colleges," the Department of Education said in a statement. (Source: BBC News)

Harvard receives support from Yale, Stanford

Harvard University received support from Stanford University and Yale University as its legal battle with the Trump administration continues to draw national attention.

Representatives from both schools supported Harvard’s decision to reject the government’s demands to rid the institution of diversity, equity and inclusion policies amid other directives. Source: The Hill)